EBIT to total assets

Description

Earnings before interest and tax (EBIT) to total assets ratio indicates a proportion between the measure that shows company’s profitability and company’s assets. In short, it represents general profitability of the company’s assets. Data to calculate this ratio is collected from the income statement and balance sheet.

Norms and limitations

There are no general norms for this ratio.

It is recommended to compare this ratio to those of the companies, working within the same industry.